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Home My WebLink AboutAgenda GEPB 093005I I I I I I I I I I i I E 1 I E I I i BOGDAHN CONSULTING, LLC. simplifying your investment decisions City of Palm Beach Gardens GENERAL EMPLOYEES’ RETIREMENT SYSTEM -September, 2005- www. bogdahnconsulting.com 340 West Central Avenue Suite 300 + Winter Haven, Horida 33880 Telephone (863) 293-8289 + Facsimile (863) 292-8717 I I I I I I I I I I I I 1 I c I I I 1 Performance Eva1 uation for Palm Beach Gardens General Employees Pension Plan Trusco Capital Management For the Period Ending September 30, 2005 Presented by: Bogdahn Consulting, LLC I I I I I I I 1 I I I I I I I I I I 1 Palm Beach Gardens General Employees Pension Plan Executive Summary Report Explanation The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, and relative to the investment policy. These are provided over different time periods including up and down markets. All rates of return are annualized if the period for which they are calculated exceeds one year. Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value shows the value as of the date of the report. Net contributions are the total contributions less the total withdrawals during the period. The Investment GIL is the gain or loss resulting from the investments. It is the difference between the beginning and ending values that cannot be explained by the net contributions. Positive investment GIL figures represent a profit, and negative values represent a loss. Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of time, such as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk. Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up through 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded the policy's returns. The investor would prefer that this difference be positive for all time periods; however, it is more important for it to be positive for the longer periods rather than the shorter periods. Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year of performance represents the return from January 1st through December 31st. Watch out for a trend of declining relative performance in recent periods. Returns In lJp/Down Markets: This section shows how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the policy, was positive and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market returns are calculated for the fund and the policy based on the up quarters. Down market returns are calculated for the fund and the policy based on the down quarters. The ratio of the fund's return in up markets to the policy's is the up market capture ratio. The ratio of the fund's return in down markets to the policy's is the down market capture ratio. Ideally, the fund would have a greater up market capture ratio than down market capture ratio. 1 Palm Beach Gardens General Employees Pension Plan Executive Summary -~_____ Account Reconciliation Investment Policy 2005 09/30/1994 Weight . -. 09/30/2005 Qtr YTD Trailina Returns thmuah SeDtember 30.2005 09/30/1994 1 Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9yr 10Yr Incept Calendar Year Returns r-- 1 09/30/2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 1 Returns in Up Markets Returns in Down Markets Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 2 I 1 II I I I I I I I I I I I I 1 I 1 Palm Beach Gardens General Employees Pension Plan Asset Allocation Through September 30, 2005 At Market Cash 6 Equiv 1% \ Equity 61% Equity 57% Fixed Income 38% At Cost Cash & Equiv 1 Oh 3 Palm Beach Gardens General Employees Pension Plan Universe Comparison Report Explanation The universe compares the fund's returns to a group of other investment portfolios, called a universe. Ideally the universe is comprised of many other investment funds with similar investment profiles. Comparisons are provided over many different time periods. Trailing Returns: This section focuses on longer term returns. It shows the cumulative time weighted returns and percentile rankings for the last 1 year, 2 years, 3 years, and so on up through 10 years if available. The returns for the fund, the policy and the universe percentiles are displayed. A percentile ranking of 1 is the best, and 100 is the worst. For example, a ranking of 50 means that the fund outperformed half of the universe. A ranking of 25 means the fund was in the top 25% of the universe, outperforming 75%. Above 50 is acceptable. Above 25 is excellent. High rankings over all time periods are ideal; however, it is more important to rank highly over the longer periods rather than the shorter periods. Calendar Year Returns: This section focuses on shorter periods and gauges the consistency of performance over time. It shows the calendar year returns for the fund, the investment policy and the universe percentiles. Each full year of performance represents the return from January 1 st through December 31 st. Ideally the fund has performed well in the earlier years and in the most recent years. Watch out for a trend toward underperformance in recent periods. Note the performance in different market environments. A high policy return indicates a bull market, and a low policy return indicates a bear market. All rates of return are annualized if the period for which theyare calculated exceeds one year. 4 I I 1 I I I I I I I I I i I I I I I 1 5th %-tile 25th %-tile 50th %-tile 75th %-tile 95th %-tile Palm Beach Gardens General Employees Pension Plan Universe Comparisons 60% Lg Cap Core & 40% High Qualilty Bond 13.68 12.35 13.61 7.53 4.79 9.99 9.72 12.05 6.03 2.41 8.44 8.78 11.10 5.17 1.41 7.64 8.03 10.14 4.41 0.61 5.53 5.76 8.21 2.91 -1.54 I I I I I I I I 5.99 4.03 2.98 2.24 0.83 Return 8.40 9.03 11.74 6.1 1 2.17 3.58 5.19 5.92 8.1 2 8.68 %-tile I 521 421 331 241 281 331 301 151 121 IO 7.57 6.89 8.94 5.42 5.40 7.51 4.60 4.82 6.88 4.01 4.22 6.22 2.85 2.84 4.82 12.89 3.21 -0.70 -2.41 Calendar Year Returns 21.77 23.85 13.94 20.05 11.87 18.01 9.72 14.49 1 Qtr I YTD I 2004 I 2003 1 2002 5th %-tile 25th %-tile 50th %-tile 75th %-tile 95th %-tile Return 1.75 1.87 8.33 14.87 -9.90 %-tile I 781 751 281 901 45 4.87 6.35 10.61 22.15 -6.02 2.67 3.50 8.43 19.57 -8.97 2.15 2.40 7.53 18.17 -10.15 1.78 1.86 6.43 16.73 -11.58 0.87 0.26 4.31 13.99 -13.58 Return 1.79 2.44 8.25 18.76 -9.53 %-tile I 751 491 30/ 381 36 -5.23 I I I I I I I I 3.84 10.59 Rehrms am in percent. "%-tile" Is the percentile ranking within the universe. Returns for periods exceedlng one year am annualized. Incept Is September 30.1994 to September 30,2005 2001 0.84 9 38 2.49 -2.72 -4.10 -5.12 -8.55 2000 I 1999 I 1998 I I -r- 5.74 16 I I -0.92 11.40 21.35 53 I 571 14 I I . . . . . . . 9.10 8.04 7.43 6.79 5.45 1997 21.72 23.66 19 25.40 23.20 21.48 18.95 14.21 5 Palm Beach Gardens General Fixed Income Executive Summary -__ Account Reconci I ia tion Investment Policy ____ 2005 09/30/1994 Qtr YTD Incept Weight 09/30/2005 Trailina Returns throuah SeDtember 30.2005 Y Y r- Calendar Year Returns _~___ 09/30/2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 Returns in Up Markets Returns in Down Markets 09/3011994 5 Yr 10 Yr lncept Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 6 I I I I I I I I I I I I I I I I I I 1 Palm Beach Gardens General Fixed Income Universe Corn pa risons High Quality Bond tlni - 5th %-tile 4.35 5.28 7.57 6.80 7.61 7.57 6.49 6.84 7.28 7.20 25th %-tile 3.00 3.45 4.62 5.09 6.54 6.51 5.48 6.03 6.46 6.31 50th %-tile 2.42 2.75 3.64 4.35 5.87 75th %-tile 1.68 1.85 2.60 3.20 4.69 5.84 4.91 5.49 5.86 5.70 4.81 4.34 4.80 5.04 5.04 1 0.96 I 1.11 1 1.631 2.02 3.29 3.68 3.94 I 4.25 I 4.38 3.57 1 .__ 95th %-tile -- Calendar Year Returns Return -0.96 1.16 3.16 2.83 9.23 %-tile I 951 71 1 61 1 77 1 28 Return -0.97 1.74 4.21 4.68 11.02 %-tile I 951 301 341 351 4 I I I I I 5th %-tile 0.74 2.77 6.19 11.51 10.87 25th %-tile 0.10 1.83 4.54 5.34 9.37 50th %-tile -0.42 1.49 3.69 4.04 7.98 75th %-tile -0.67 1.09 2.13 2.90 5.51 95th %-tile -0.97 0.70 0.98 1.63 1.50 Returns am In psroent. "%-tile" Is the percentile ranking within the universe. Returns for periods exceeding one year are annualized. Incept Is September 30,1994 to September 30,2005 9.85 12.37 4.61 9.45 8.40 10.90 1.75 8.34 7.81 9.56 -0.45 7.26 7.00 7.70 -1.46 6.33 4.93 5.78 -3.67 4.50 7 I I I I t I I I I It i I I llt I I I R I Palm Beach Gardens General Equity Executive Summary -- Investment Policy ________- Account Reconciliation - __---___-- 2005 09/30/1994 Qtr YTD Ldex Weight 09/30/2005 I Trailing Returns through .__ September 30,2005 09/30/1994 Incept __ .______ 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10Yr Calendar Year Returns I-- I 09/30/2005 2005 Qtr YTD 2004 2003 2002 2001 2000 1999 1998 1997 1996 1 Returns in Up Markets 09/30/1994 Incept Inception date is September 30, 1994 All dollar values are shown in thousands. Returns for periods exceeding one year are annualized. Returns are net of fees. 8 Returns in Down Markets 09/30/1 994 3 Yr 5 Yr 10 Yr Incept I I I I I I I I I I I I I I- I 1 f I I 18.42 14.24 12.80 11.66 7.62 Palm Beach Gardens General Equity Universe Corn parisons Pure Large Cap Core Trailing Returns through September 30,2005 __ __ __ --__ 19.96 9.53 17.22 7.04 16.25 5.75 14.36 4.59 11.34 2.30 I I 5.96 2.98 0.96 0.18 -2.28 Return 12.05 %-tile I 56 9.30 7.90 5.73 5.20 4.25 4.57 3.61 3.41 1.53 1.08 :, ................ .- .............................. pdi* :;:;:;:;:;:I, j: j ,; ::::I::, : ,: :.,::':'j. .................... ............................ I 11.05 8.55 7.80 6.55 4.30 Return 12.25 ............................... ............................. UAiQw6 ..................... I: :I 1:::: I: I: :,:,I: ,'.I : I : I::, j::: ............................. 5th %-tile 20.76 ,I::: 15.27 12.21 11.41 9.51 8.74 7.61 5.25 75th %-tile 95th %-tile Calendar Year Returns 11.38 7.55 Return Return %-tile 5th %-tile 25th %-tile 50th %-tile 75th %-tile 95th %-tile .~ Qtr 3.61 51 7.95 4.61 3.61 3.26 1.68 I I I I I I I I -- I I I I I I I I 12.66 13.47 5.34 0.98 3.72 6.00 4.47 7.77 8.94 56 1 831 641 21 1 191 231 541 51 1 45 I I I I I I I I I I I I I I 13.06 16.72 6.04 -1.49 0.83 4.31 4.89 8.34 9.49 41 I 361 41 I 481 541 491 341 301 26 I I I I I I - .... I I I I I I I I YTD I 2004 1 2003 I I ........... 77 -. -I- 2.77 10.88 28.68 53 I 341 29 I I .. I I 9.17 15.14 33.34 5.01 11.51 28.99 2.84 10.39 27.83 2.19 8.38 24.97 -0.60 5.14 20.58 3.89 0.08 -1.60 -2.48 -6.17 2002 I 2001 I 2000 1 1999 -21.03 -4.42 5.29 14.26 34 I 91 121 81 -22.10 -11.88 -9.11 21.04 46 1 48 1 60 I 38 I I 1 I I I Returns am in percent. "%-tile" is the percentile ranking within the universe. Returns for periods exceeding one year am annualized. Incept is September 30,1994 to September 30,2005 9 -1 5.55 -20.1 3 -22.23 -23.39 -26.60 35.03 22.80 20.27 16.39 ~ 6.13 * .................... ................... ..................... ................ ............. ................. .................... ................... ............ .. ........... ................... ............ ..................... ..................... ................. 8 24 I ..................... .................. ................ ................... .................... ..................... ..................... ...................... ................ 30.81 13.04 I 17.69 Palm Beach Gardens 3 Yr 5 Yr -- -2.87 -1 1.84 I I I I I I I I I I I I I 10 Yr -1 2.97 General Employees Pension Plan 10.00% 5.00% 0.00% _____.. _. . - Fund (%) Policy (YO) Difference (%) Ratio # Up Qtrs - - - . ___ - -5 .OO% -10.00% -1 5.00% -20 .OO% ~ Fund (Oh) Policy (%) Difference (Oh) Ratio # Down Qtrs __ -__ - - -3.00 0.13 95.67 3.00 ~__~ __ -I Incept - -1 2.97 -1 4.83 1.86 87.46 11 .oo - -- I n Fund(%) Policy (Yo) I 10 A04 11 JO 1 I I I I I I I I I I I I I I I I I E Palm Beach Gardens General Employees Pension Plan Objective Comparison $3, ..................................................................... ........... T 4 ?K $3,004 \ \., m - +K x /' $2,50( 0 0 I so F+ Jc .. I 1 Q 0 I JO: I v a I e U $0 103 503 Quarter Ending I 0 Fund +- Policy 0- Actuarial 8% 0- CPI + 4% Inception date is September 30, 1994 All dollar values are shown in thousands. 11 Palm Beach Gardens General Employees Pension Plan Attributions of Returns Report Explanation Performance attribution concentrates on evaluating the effect of the manager's decisions on asset allocation and security selection. This allows the investor to see whether the manager is adding value by adjusting the actual asset allocation or by picking individual securities. This information is valuable in helping determine the amount of freedom that might be given to the manager in regard to asset allocation ranges. The result of these skills are shown for multiple time periods. The top section shows the returns for both the account and the investment policy and the results of the manager's contribution. The fund's return is thus attributed to the policy and the manager. The bottom section divides the manager's contribution into two components: asset allocation and security selection. The asset allocation effect measures the value that was added by varying the actual asset allocation from the target allocation. This is done by assuming investments, in amounts equal to the actual asset allocation weights, were made in the policy's indices so that security selection has no effect. The difference between this return and the policy's return is the asset allocation effect. The security selection is the remainder of the manager's contribution that is not explained by asset allocation. 12 Palm Beach Gardens General Employees Pension Plan Attribution of Returns Attribution of Performance to show Manager Contribution Policy + Manager Contribution = Fund Attribution of Manager Contribution between Asset Allocation and Security Selection 5 Years -1.31 Asset Allocation + Security Selection = Manager Contribution 13 P e r e n t E f f e C t C P e r e n t E f f C 0 C t 15.00% 10.00% 5.00% 0.00% -5.00% 15.00% 10.00% 5 .ooo/o 0.00% -5.00% Palm Beach Gardens General Employees Pension Plan Asset Allocation Effect .--____- -- __ _.__ -- ................................................................................................ ........................................................................................................................................ I- d- A-I L-L-~.L -L-.LIIII DO0 Mol JOl SO1 DO1 M02 502 SO2 DO2 M03 J03 SO3 DO3 M04 504 SO4 DO4 M05 505 SO5 Quarter Ending Security Selection Effect ...... ~ ___ __.__ ........................................................................................................................... ........... \ . ................ I I I I I I I I I I I LA- I I _ILL Quarter Ending DO0 M01 JO1 SO1 DO1 M02 J02 SO2 DO2 M03 J03 SO3 DO3 M04 J04 SO4 DO4 M05 505 SO5 I Quarterly Effect __Cumulative Effect I 14 Palm Beach Gardens 80.00%- 70.00%- 60.000/0 s.)oo/. 40 .OO% 3()000/ 20~oo0/0. 10.00% I I . ~- ~ .. __..___ ....... - ............ ................................................................................ ...................................................................................................... ............................................................................................................... ..................................................................................................................... ... ...................................................................................................................... ................................................................................................................................. ........................................................................................................... I I I I General Employees Pension Plan Asset Allocation vs Targets Quarter Ending [m Cash&Equiv ylt Target I ... .... . - - .~ . _. __ ............................................................................ ..... 60.00%- 50.00% 4,0.00% 30.00%. 20.00%- 10.00% o'ooo'o- DO0 M01 JOI SO1 DO1 M02 J02 SO2 DO2 M03 J03 SO3 DO3 M04 J04 SO4 DO4 M05 J05 Quarter Ending .. .- ................................................................................................................................... ........ .......................................................................................................................... ........................................................................................................ Quarter Ending Fixed Income Target 1 15 I I $1 1 .......................................................................................................................................................... 15.00% I I I 10.00% R e t 5.00% U r n Palm Beach Gardens General Employees Pension Plan Manager Contribution -- - --- - ________~-__-- -____ - - __ ___ __ ............................................................................................ i ... ................................... :____ ........................................ l--I_lII_ ----ALL I I I I I L-II-1- 300 M01 JO1 SO1 DO1 M02 502 SO2 DO2 M03 J03 SO3 DO3 M04 J04 SO4 DO4 M05 J05 SO5 Quarter Ending 0.00% -5.00% I Quarterly Cumulative I Growth of $100 Fund vs Policy --_____ ___ __..~ __ $12 ........................................................................................................................ ........... $l% $1 ld~..... ............................................................................................................ $10 ........... ........................................................................................... I- DO4 M05 - E3 I JO! - L LO! Quarter Ending 1 0 Fund e Policy I 16 DH CPI+4% Sep 1996 Dec 1996 Mar 1997 Jun 1997 Sep 1997 Dec 1997 Mar 1998 -- Jun 1998 Sep 1998 Dec 1998 Mar 1999 Jun 1999 1,728 1,800 -72 1,518 1,820 1,916 -96 1,551 1,927 2,045 -118 1,685 2,141 2,284 -144 1,717 2,328 2,423 -94 1,752 2,375 2,530 -1 55 1,820 2,568 2,756 -1 88 1,856 2,550 2,842 -291 1,893 2,385 2,730 -345 1,928 2,679 3,106 -427 2,001 2,642 3,168 -526 2,025 2.790 3.256 -466 2.033 2,893 3,062 3,046 - 2,805 2,540 2,655 2,609 2.852 -21 8 2,229 -234 2,256 -222 2,283 -1 84 2,290 -1 44 2,305 -221 2,313 -224 2,345 -31 7 2.358 I I I I I I I I I I I I I 1 I I I I 1 Palm Beach Gardens General Employees Pension Plan Quarterly Comparison Analysis ($) I Fund I Policy I Diff I Actuarial 8% Period Ending D iff 1,079 1,098 1,194 1.294 0 -39 17 75 1,079 1,090 1,188 1.286 0 -31 23 84 Sep 1994 Dec 1994 Mar 1995 Jun 1995 1,079 1,059 1,211 1.369 1,079 1,078 1,240 1.421 0 -20 -29 -51 1,316 1,365 1,452 1,486 116 168 182 202 1,301 1,338 1,431 1,461 131 195 203 227 Sep 1995 Dec 1995 Mar 1996 Jun 1996 1,432 1,533 1,634 1.688 1,495 1,600 1,697 1.752 -63 -67 -62 -64 1,488 1,514 1,647 1,664 21 0 270 242 424 576 556 71 2 657 456 678 61 7 757 584 726 758 675 734 71 9 603 676 240 306 280 477 637 635 799 753 566 805 753 900 1,691 1,741 1,769 1,797 1,818 1,874 1,888 1.890 Sep 1999 Dec 1999 Mar 2000 Jun 2000 Sep 2000 Dec 2000 Mar 2001 Jun 2001 ~- 3,131 3,391 3,490 3,432 3,436 3,324 3,104 3.183 1,917 1,934 1,999 2,010 2,027 2,042 2,061 2.068 2,647 2,821 2,907 2,843 2,926 2,945 2,846 2.927 -484 -570 -583 -589 -510 -380 -258 -256 2,063 2,095 2,149 2,167 2,192 2,225 2,243 2.251 730 887 907 833 899 903 785 859 Sep 2001 Dec 2001 Mar 2002 Jun 2002 sep 2002 Dec 2002 Mar 2003 Jun 2003 -_. 2,675 2,827 2,824 446 57 1 541 331 92 121 41 176 __- 2,028 2,013 2,040 2,038 2,041 2,024 2,068 2.050 648 81 4 783 583 356 41 0 31 8 484 2,621 2,397 2,434 2,385 2.534 SeD2003 I 2.533 I 2.861 I -329 I 2.373 160 I 2.056 477 All dollar values are shown in thousands. 17 I I 2,388 2,424 2,453 2,469 2,483 2,504 ____ Palm Beach Gardens General Employees Pension Pian 292 31 7 263 205 321 240 Quarterly Comparison Analysis ($) 2,035 2,077 2,105 2,096 2,088 2,115 I I I 645 664 61 1 578 71 7 630 Period Ending _____ 2,490 2,513 Dec 2003 Mar 2004 Jun 2004 228 2,087 630 227 2,129 61 1 Sep 2004 Dec 2004 Mar 2005 I Fund 2 , 680 2,741 2.71 7 2,674 2,805 2,745 2,717 2.740 __- Policy 3,036 3,094 3,068 3,045 3,188 3,112 3.1 17 3.148 All dollar values are shown in thousands. Diff -356 -352 -351 .___- -371 -383 -367 400 -408 I I -r-- __-- Actuarial 8% I Diff I CPI + 4% I Diff I I 18 I Fund Period Ending Dec 1994 Mar 1995 Jun 1995 Sep 1995 Dec 1995 Mar 1996 Jun 1996 Sep 1996 Dec 1996 Mar 1997 Jun 1997 Sep 1997 Dec 1997 Mar 1998 Jun 1998 Dec 1998 Mar 1999 Jun 1999 Sep 1999 Dec 1999 Mar 2000 Jun 2000 sep 2000 Dec 2000 Mar 2001 Jun 2001 sep 2001 Dec 2001 Mar 2002 Jun 2002 -- __ sep 1998 ___ 2002 -1.67 7.15 6.68 4.85 5.46 2.64 2.91 2.22 5.1 2 0.1 7 11.16 8.66 0.59 8.07 -0.75 -6.44 10.89 -0.83 6.80 4.78 6.89 2.62 -1.42 3.54 0.95 -2.54 4.1 1 -6.53 6.32 0.47 -5.93 -7.51 ____- __--- _____ ___ ___ -_- ____ Dec 2002 3.08 Mar 2003 -1.47 Jun 2003 7.62 1.16 7.08 Palm Beach Gardens General Employees Pension Plan Quarterly Comparison Analysis (%) Policy 0.16 7.82 8.32 5.52 5.49 2.24 2.88 2.61 6.23 1.30 11.79 5.95 3.06 8.90 3.05 - -3.89 12.51 2.50 3.77 -3.56 8.60 2.57 -1.02 0.63 - -3.01 -5.93 3.69 -7.20 6.41 0.03 -6.75 -8.45 5.95 -1.24 10.56 1.44 7.21 Diff Actuarial 8% Diff CPI+4% -1.83 1.94 -3.61 1.22 -0.67 1.94 5.21 2.12 -1.64 1.94 4.74 1.71 -0.67 1.94 2.91 1.45 -0.03 1.94 3.52 1.08- 0.40 1.94 0.70 2.39 0.03 1.94 0.97 1.69 -0.39 1.94 0.28 1.69 -1.1 1 1.94 3.18 1.49 -1.13 1.94 -1.77 1.89 -0.63 1.94 9.22 1.09 2.71 1.94 6.72 1.49 ___ ~ -2.47- 1.94 -1.35 0.99 -0.83 1.94 6.13 1.59 -3.80 1.94 -2.69 1.49 -2.55 1.94 -8.38 1.29 -1.62 1.94 -3.33 1.94 3.03 1.94 8.95 4.86 -2.77 -1.22 1.94 -6.72 -1.71 1.94 4.95 0.05 1.94 0.68 2.91 1.94 1.60 -0.40 1.94 -3.36 1.09 1.59 1.69 1.99 1.29 2.69 1.69 I 1.69 0.67 -0.09 0.82 0.94 __ -0.99 1.19 -4.48 2.19 2.1 7 2.09 -8.47 1.18 4.38 0.09 -1.47 2.19 -7.87 1.69 -9.45 1.59 -2.87 -0.231 !E 1 -3.41 i::: -2.94 5.68 0.69 -0.28 1.94 -0.78 1.79 -0.1 3 1.94 5.14 0.49 Returns for periods exceeding one year are annualized. 19 Diff -2.89 5.03 4.97 3.40 4.38 0.25 1.22 0.53 3.63 10.07 7.1 7 6.48 -2.24 -7.73 -1.72 --___ -0.40 9.80 -2.42 5.1 1 -6.77 5.60 -0.07 1.85 -0.24 -4.73 2.02 -7.71 6.23 _- -3.1 1 _____ -1.72 -7.62 -9.10 2.10 -4.27 6.93 -0.63 6.59 1 I I I I I 1 I I I i I I I I I I I e Period Ending Mar 2004 Jun 2004 -- Mar 2005 Jun 2005 SeD 2005 Fund 2.67 -0.24 -0.38 6.17 -1 .I9 1.32 1.75 InceDt. I 8.72 Palm Beach Gardens General Employees Pension Plan Quarterly Comparison Analysis (%) Diff --T-- Policy Diff Actuarial 8% 0.30 -0.68 1.94 -2.32 5.82 0.35 1.94 4.23 -3.13 1 -0.62 I 2.21 1 0::; I 1.94 -1.54 8.00 1.79 -0.04 9.95 -1.23 Returns for periods exceeding one year are annualized. 20 CPI + 4% 2.59 2.19 1.08 1.18 2.59 1.69 3.20 6.60 _____ Diff 0.08 -2.43 -1.46 4.99 -3.78 -0.37 -1.45 ... ___ 2.12 _..____ Palm Beach Gardens General Employees Pension Plan Risk Measures Report Explanation The evaluation of a fund's performance should extend beyond return to encompass measures of risk. The next two pages are used to determine the level of risk to which the fund has been exposed, and whether the return has been commensurate with the risk taken. All measures are calculated for both the fund and the policy as well as the difference between the two. Up to four time periods are evaluated depending on the age of the fund. # Of Negative am/# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return was less than zero, and the number of positive quarters is the number of quarterly returns which were greater or equal to zero. Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has beaten the policy and the percent of the quarters the policy has beat the fund. A high average for the fund (e.9. over 50) is desirabie, indicating the fund has beaten the policy frequently. Worst QuarterlBest Quafiemange: The worst quarter is the lowest quarterly return experienced during the period, a measure of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and indicates dispersion. Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk. Alpha/Beta/RSqual.ed: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r-squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas indicate higher relative risk. A beta of 1.2 indicates 20% more risk than the policy. The alpha measures the return adjusting for beta. The higher the alpha, the better. R-squared measures the relationship between the policy and the fund. A high r-squared means the returns of the fund can largely be explained by movements of the policy. The higher the r-squared, the more reliable the alpha and the beta. R-squared may range from 0 to 100. Beta, alpha and r-squared are derived from regression analysis using the fund and policy returns as the dependent and independent variables respectively. Roughly, one wwld expect the fund's performance to equal the return of the policy multiplied by the beta plus the alpha. Sham RatioTTmynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. The Treynor ratio is the excess return per unit of market risk as measured by beta. Both of these should be compared against the corresponding value for the policy. Higher numbers are better, indicating more return for the level of risk that was experienced. 21 ------7 3Yf., , # of Negative Qtrs # of Positive Qtrs Batting Average Worst Qtr Best Qtr Range Worst 4 Qtrs Standard Deviation Beta Annualized Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio .......................... :sol:~yF::;:;:]:I:i:;:j,;:;.;,;,~,, : .:j ' I::::: -. .......... .-. ........ # of Negative Qtrs # of Positive Qtrs Batting Average Worst Qtr Best Qtr Range Worst 4 Qtrs Standard Deviation Beta Annualized Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio ___ Palm Beach Gardens General Employees Pension Plan Risk Measures m ....... fund 2- 4.00 8.00 33.33 -1.47 7.62 9.09 4.26 5.60 0.81 0.89 1.38 9.54 2.25 -1.08 -0.36 .......... ... . ' .:. : ;:Fmd; 13.00 27.00 42.50 11 .I6 18.67 8.23 0.79 0.17 0.83 0.50 5.16 3.93 -0.21 .. -7.51 -1 1.63 _-- ... : .... : ..: : : P*lk* -- 3.00 9.00 66.67 -1.54 10.56 12.10 4.23 6.56 1 .oo 0.00 1 .oo 1.55 10.15 0.00 -___ ........... ;;;;;;/mjij$f& 11 .oo 29.00 57.50 12.51 20.96 -12.21 9.41 1 .oo 0.00 1 .oo 0.52 4.91 0.00 -8.45 --- Drn 1 .oo -1 .oo -33.34 0.07 -2.94 -3.01 0.03 -0.96 -0.19 -0.36 -0.1 1 -0.17 -0.61 2.25 ........... ...... ..... ...... .. .'...'...jpi. 2.00 -2.00 -1 5.00 0.94 -1.35 -2.29 0.58 -1.18 -0.21 0.17 -0.17 -0.02 0.25 3.93 --.-.., 22 ............. s::'9r:::::::::::::::::::::::::::::::::::.~':.,:,' # of Negative Qtrs # of Positive Qtrs Batting Average worst Qtr Best Qtr Range Worst 4 Qtrs Standard Deviation Beta Annualized Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio .......................... .......................... ........................... 1eef)t ;: j :I : ;: j : j : j 1;. ;:;:;:I: ; : I:;: ; , ; : 1: : # of Negative Qtrs # of Positive Qtrs Batting Average Worst Qtr Best Qtr Range worst 4 Qtrs Standard Deviation Beta Annualized Alpha Requared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio , Fund] Poky] Diff 1 8.00 12.00 55.00 -7.51 7.62 15.13 7.26 0.78 0.81 0.88 0.10 0.91 3.13 0.28 -1 1.63 8.00 12.00 45.00 -8.45 10.56 19.01 -12.21 8.67 1 .oo 0.00 1 .oo -0.02 -0.18 0.00 0.00 0.00 10.00 0.94 -2.94 -3.88 0.58 -1.41 -0.22 0.81 -0.12 0.12 1.09 3.13 '.::::;:*w ... : .... 14.00 30.00 38.64 11.16 18.67 8.03 0.80 0.01 0.83 0.60 5.97 3.78 -0.33 -7.51 -1 1.63 ...................... .. ... .. '.'p(&y.'..... ,::::::':Diff .............. -.-. . ...Lp 1 1 .oo 3.00 33.00 -3.00 61.36 -22.72 -8.45 0.94 12.51 -1.35 20.96 -2.29 -12.21 0.58 9.17 -1.14 1 .oo -0.20 0.00 0.01 1 .oo -0.17 0.66 -0.06 6.01 -0.03 0.00 3.78 I 1 3.0004 A n n a I i z e d U -.-.--__-I- -- I_ L A--- ~- .OO% 5.00% 10.00% 15.00% 20.00% I I R 13.00% 12.00% 11 .OO% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% m Fui SLGC m m TBILL S&P500 m Risk (Annualized Std Dev) 1% I-+- Policy I 23 Palm Beach Gardens General Employees Pension Plan Return vs Risk through September 30, 2005 0.000/8.~~~0 5.00% 10.00% 15.00% 20.00% 3 Years . ---r _____________ 25.00% 20.00% ____ SLGC m m ‘TBlLL 15.00% 1 e ~ - - FJnd t U e t 7.00% U r 6.00% S8P500 m - SLGC m . m 10.00% 9.00% 8.00% R n 5.00% 4.00% 1 , TBILL 3.00% 5.00% 10 Years S&P500 m -. . __ und 15.00% 25.00% 8.00% 7.00% 6.00% 5.00% R 4.00% e t 3.00% 2.00% 1 .OO% 0.00% -1 -00% -2.00% U S 0.00% 10.00% 20.00% Risk (Annualized Std Dev) 5.00% 15.00% 25.00% O.C^% 10.00% 20.00% Risk (Annualized Std Dev) 13.00% 12.00% 1 1 .OO% 10.00% R 9.00% e t 8.00% r 7.00% 6.00% 5.00% 4.00% 3.00% U S ___- -- -. ._ -. m SLGC m TBILL IC -I 5.00% Inception S&P500 m und I --A 15.00% 25. 10.00% 20.00% 0.00% Risk (Annualized Std Dev) 10% Policy: First Objective: Second Objective: Universe Data: Palm Beach Gardens General Employees Pension Plan 0913011 994-09130/2005 60.00 S&P 500 40.00 Lehman GovICredit Bond 0913011 994-09130/2005 Annual Return of 8 .OO% 09130/1994-09130/2005 100.00 US Consumer Price Index + 4.00 annual adder 60% Lg Cap Core & 40% High Qualilty Bond 09130/1994-09/30/2005 40.00 High Quality Bond 60.00 Pure Large Cap Core 25 I Bogdahn Consulting, LLC. CONTRIBUTIONSMTHDRA WALS Palm Beach Gardens General General Employees Pension Plan Account #56825506 From 07-01-05 To 09-30-05 Tran Trade Settle Code Date Date ~ CONTRIBUTIONS li 07-06-05 07-06-05 li 07-18-05 07-18-05 li 07-19-05 07-19-05 li 08-02-05 08-02-05 li 08-12-05 08-12-05 li 08-26-05 08-26-05 li 09-06-05 09-06-05 li 09-12-05 09-12-05 li 09-23-05 09-23-05 EE EE ER ER ER ER ER ER er SeeUrity Cash Cash Cash Cash Cash Cash Cash Cash Cash Broker hunt Quantity Code Commission 594.82 552.76 15.640.02 5 12.80 517.40 572.39 15,640.02 574.34 557.25 35,161.80 WITHDRAWALS k, 07-01-05 07-01-05 Cash 18,765. I8 lo 07-14-05 07-14-05 Cash 1288. I7 lo 07-14-05 07-14-05 Cash 2,178.00 lo 08-01-05 08-01-05 Cash 18,765.18 k, 09-01-05 09-01-05 Cash 18.765.18 59,761.71 Bendit payments C&D Gibson & Wirt for plan insurance Benefit payments Benefit paymats EXPENSE ACCOUNTS 0 .00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 08-3 1-05 08-3 1-05 Administration Fee 5,095.1 8 5.095.18 QUartdy llIaMgI3llellt fee EXPENSE ACCOUNTS PAID BY CLIENT 0.00 I I I I I I 1 1 I 1 I 1 1 i 1 I 1 I I I I Quantity security DOMESTIC EQUITIES- Mutual Funds be Cap 46.28 1.000 STI High Grade Relative Value Fd 13.072.0 Sun Trust HighOrade Equity/Growth Bogdahn Consulting, LLC. PORTFOLIO APPRAISAL Palm Beads Gardens General General Employees Pension Plan Mid Cap 2,588.000 Mid Cap Equity Fund/ was STI Ud. Cap. Fd. Small Cap 6.087.000 SuntNSt Retirement Small Cap Equity Fund INTERNATIONAL EQUITIES Global Funds Fomign 1 1,900.833 STI Int'l Index Equity Fund T sham FIXED INCOME Bond Funds Cwporate Bond Fund 28.555.000 Sun Trust HighGrade Bond 10,222.000 Suntrust high grade IntemKdiate Bond Fd CASH & EQUIV. Money Markcts Cash & Equiv. 14.501 Suntrust Retirement Reserve Fund TOTAL PORTFOLIO Account #56825506 September 30, 2005 (Excluding Reinvested Divr) Unit Total Coat cost 10.29 476,206.24 49.46 646,511.17 1,122,717.41 24.77 64,112.94 10.13 61,633.63 1,248,463.98 1,248,463.98 1 1.78 140.1 32.49 140,132.49 140.1 32.49 31.36 895.556.60 10.46 106,899.86 1,002,456.46 1,002,456.46 Market Pet. Price Value GnidLoss Assets 13.66 632,059.62 155,853.38 23. I 54.63 714,084.14 67,572.98 26.1 1,346,143.76 223,426.35 49.1 32.28 83.550.99 19,438.05 3.0 13.65 83.093.64 21,460.01 3 .O 1,512,788.39 264,324.41 55.2 1,512,788.39 264,324.41 55.2 13.98 166,373.65 26241.16 6.1 166,373.65 26,241.16 6.1 166,373.65 26,241.16 6.1 -- 32.82 937,260.77 41,704.16 34.2 10.68 109,201.63 2,301.76 4.0 1,046,462.39 44,005.93 38.2 1,046,462.39 44,005.93 38.2 1 .oo 14,501.07 1 .oo 14,501.07 0.00 0.5 14.501.07 14.501.07 0.00 0.5 14,501.07 14,501.07 0.00 0.5 2,405,S54.00 2,740,12550 334,57150 100.0 .___ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 1 1 1 1 1 1 I I I I I I I I I > - S 0 0 a, c/) .- e > S 0 0 a, c/) .- w uj 0 S a CT a, 0 S a S a, > 0 a, a 0 Q .- c, L (3 c, L L 6 .c 0 I 1 I I I I I 1 II I I I I I I I I I a 0 = Y * * + + + Q G) I\> 0 0 07 3 < (D v) (D 3 - . 3 0 . < (D (D 7 -I s Ill!! 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